"Why are prices so low?"
"Last time I was here I was paid almost double the price, what's going on?"
"You're only paying me, WHAT!?"
"When are prices going back up?"
Sadly, these questions and other more colorful variations of them have been common among our customers of late. Unfortunately, we do not have a lot of good answers to these questions. And believe me, low scrap prices hurt our business as much as they hurt you.
Like oil, gold, and silver, scrap metals such as copper, aluminum, and steel are commodities which are traded on open markets. The fact is the commodity markets have seen a freefall in their prices over the last several months.
Relative to other currencies around the world, the U.S. dollar is currently very strong. This makes exporting U.S. goods and raw materials more difficult because the currency exchange rates effectively add a price premium to the foreign buyer and a price break to the domestic buyer who imports from foreign sources. This, in turn, causes buyers to look outside the U.S. for a better deal on goods and materials.
When you couple the strong dollar with other issues - namely, China and Greece's recent economic instability, overproduction and underutilization of raw materials, and investor expectations of an interest rate hike by the Federal Reserve - commodity prices are feeling an intense downward pressure.
As a case in point, in April 2011, copper was trading at its all-time high of $4.66 per pound (COMEX). Today, it is trading at less than $2.33 per pound (COMEX). This means copper is now worth less than half of its high and many analysts believe it could go even lower before stabilizing.
Aluminum, steel, nickel, and other scrap commodities are also trading at multi-year lows.
So, when will the markets improve? The answer to that question is anyone's best guess, but we promise to continue offering our customers competitive market-based prices and superior service for their scrap recycling needs.
Our most current prices can be found here on our website or on our facebook account at www.facebook.com/brennerrecycling. You can also call us during normal business hours at (570) 454-8706. Whether you are a new or repeat customer, thank you for your business and we hope to see you soon.